Croda Q3 driven by strong personal care results
The company said that in reported terms, its sales during the quarter grew by 6.3% to £334.6million, compared to a Q3 2016 of £315.3m.
However, this figure was negatively impacted by currency translations to the effect of 1.7%, mainly due to a strong US dollar. This meant that constant currency sales were up by 4.4%.
Strong personal care results
The personal care division led the way, recording a constant currency sales increase of 7.5%, a figure that built on improved figures for the division recorded in the first six months of the financial year.
The other two major divisions in the business are Performance Technologies, which recorded a robust constant sales increase of 7.0%, while the Life Sciences division recorded much slower constant sales growth, at just 0.7%.
Year-to-date sales were up 12.8%, which included a currency translation benefit of 8.8%, while Q3 profit margin increased slightly compared to the previous year.
Expansion into fast growing geographies
Most of the company’s organic growth has come off the back of an increased exposure to fast growth markets, particularly in North America, where the strong economic growth benefitted the company across all sectors, resulting in sales growth of 8%.
In Asia sales grew by 6%, mainly thanks to a more local approach as the company expands its direct sales model in the region.
Sales in Europe grew by 7%, mainly due to a robust personal care market, while overall sales were 7% lower in Latin America, where macro-economic conditions have continued to impact the company’s operations.
Personal care growth in all regions
Croda reported that its personal care division experienced a good performance across its three main business areas – Beauty Actives, Beauty Formulations and Beauty Effects.
In particular, the company said that the Beauty Actives business continues its strong sales growth, thanks to innovation in fast growth niches in hair, solar and skin treatments by the recently established Beauty Effects team.
The company also added that it is increasing production capacity at Sederma, which is expected to benefit the Beauty Actives business further in the course of 2018.